Hunter Horsley, CEO of technology solutions provider Bitwise, believes that bear markets are a great period in which investors could increase their exposure to bitcoin.
He estimated that the next bull run will begin next year, noting that clients of his firm have already increased their interest in the asset.
Fortunes are made in the bear market
In an interview for Bloomberg, Horsley outlined the historical pattern of bitcoin’s price movement. During its existence, the leading cryptocurrency has periodically gone through four-year cycles, while bull runs with increasing momentum have always followed bear markets. Based on that data, he assumed that the asset will start a new price rally in 2023:
“So, in 2014, the market fell almost 60%. 2018: market below 70%. And this year, obviously, 2022, the market is down about 60%. The expectation, if the market continues with its historical trend, would be that we start a new cycle next year”.
Despite the current market downturn, the executive said that an increasing number of Bitwise clients had renewed their interest in the cryptocurrency industry. In his opinion, those who jump on the bandwagon now (when prices are much lower than last year) have a better chance of generating significant profits in the future:
“So this year’s story is definitely a bear market. However, we have seen increased interest from our customer base. And I think the bottom line for many crypto investors is that there have been four-year cycles historically, and while there are opportunities to make money at many times in the crypto market, bear markets are the times when fortunes can be made.”
Investing in times of crisis is a strategy that many financial experts have adopted. The narrative stems from the fact that prices crash triggered by panic in the space, but when the situation calms down, they exceed previous valuations. For example, when the COVID-19 pandemic was at its height, bitcoin fell below $5,000. However, he recouped his losses a year later, shooting to an all-time high of nearly $70K.
Kiyosaki and Saylor Urge Investors to Focus on Bitcoin
Robert Kiyosaki (the author of “Rich Dad Poor Dad”) also believes that people should allocate some of their wealth to bitcoin during a severe currency crisis. Not long ago, he claimed that rampant inflation, the diminishing power of the US dollar, and the upcoming recession, among other reasons, are the main factors why investors should increase their exposure to BTC.
Unsurprisingly, MicroStrategy CEO Michael Saylor is also part of that club. In June of this year, he described bitcoin’s drop to $20K as a “great buying opportunity”.
On another note, he advised residents of economically distressed countries (such as the Turks) turn to BTC to preserve their wealth during the turmoil.
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